The top economic planner in China and the chief executive of Hong Kong’s de facto central bank have signed a memorandum of understanding to support cross-border financing by mainland enterprises and promote the development of the Hong Kong bond market. Cong Liang, deputy director of China’s National Development and Reform Commission (NDRC), and Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), signed the agreement at the Belt and Road Forum in Beijing.
This agreement highlights the collaboration between China and Hong Kong in facilitating cross-border financing and strengthening the bond market. The support for mainland enterprises accessing financing in Hong Kong can further enhance economic integration and promote investment opportunities. The development of the Hong Kong bond market can also provide a new avenue for raising capital and diversify funding options for businesses. By working together, China and Hong Kong aim to boost economic growth and improve financial stability in the region.
The signing of the memorandum of understanding underscores the commitment of both China and Hong Kong towards strengthening their economic ties. It reflects their mutual interest in fostering financial cooperation and promoting the growth of the bond market. This partnership can create a conducive environment for cross-border investments and enhance the role of Hong Kong as a global financial hub. With increasing collaboration, China and Hong Kong can unlock new opportunities and contribute to the development of their respective economies.
